The German state of Saxony is quickly running out of bitcoin (BTC) to sell after moving another batch of its confiscated assets to crypto exchanges and brokers on Thursday.
Bitcoin wallets linked to the German authorities transferred a total of 10,567 BTC worth over $600 million in multiple batches during the day to crypto exchanges Bitstamp, Coinbase, Kraken and other service providers such as Flow Traders and Cumberland DRW, blockchain data by Arkham Intelligence shows.
After today’s transactions, the wallets linked to the authorities held only 4,925 BTC worth $285 million at current prices, down from the 50,000 BTC worth nearly $3 billion since they started selling the assets three weeks ago.
This means that Germany’s bitcoin selling spree could be over as soon as Friday or early next week at the current pace, given that the wallets unloaded roughly 35,000 BTC so far this week.
The tally could change in the later hours because of the wallet’s odd practice of receiving a part of the transferred assets, at times in the $10 million range, back from exchanges and brokers before the end of the day. (Greg Cipolaro, the head of research at digital asset manager NYDIG , called the on-chain activity “perplexing” in a Wednesday note.)
The looming finish of Germany’s $3 billion selling spree could allay crypto investors’ fears, who have been fixated on the on-chain movements of large potential sellers on the market over the past few weeks, tying the recent downturn in asset prices to concerns over supply overhang.
Bitcoin’s 15% correction over the past month coincided with the U.S. government, which holds over $12 billion in seized bitcoin, moving $240 million worth of Silk Road-related BTC to Coinbase and the estate of the defunct Japanese exchange Mt. Gox starting repayments of 140,000 BTC to creditors this month, who might want to cash out after ten years of waiting.
Fears about the looming sell pressure may have been overblown, NYDIG’s Cipolaro said in a report, with bitcoin’s decline exceeding the price impact if all the potential selling materializes.
